The gig economy - friend or foe?

The gig economy - friend or foe?
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The gig economy – friend or foe?

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What began as seemingly unstoppable success for the gig economy has very quickly turned sour with regular press around poor pay, lack of employee benefits and tough demands placed on workers. As of this week, working standards will be addressed with a proposed government review of employment law and minimum wage for those operating in the gig economy. A number of solutions could be proposed as part of this reform to improve the working conditions of an estimated 1.1 million gig workers in the UK. In anticipation of what could be a lengthy review process, we take a look at the current conditions for gig workers and its pros and cons.  

Pros

Flexible working hours

The gig economy offers perfect opportunities for those who need to pick up work as and when it suits them. Those pursuing other projects, supporting a family or studying, for instance, can earn an income whilst still having the time to commit to other priorities.

Additional income

Often those in full time work or those unable to commit to a full-time job still require an extra cash flow. With the option to work more or less hours as needed, gig workers can pay for their living expenses without the ties of a 9-5 job.

Style of work

Full-time contracts often come with the extra baggage of tough entry requirements and long recruitment processes. For talented workers who want to enter the workforce quickly, contracting can be a quicker way to get employed whilst learning new skills which can build a comprehensive freelance portfolio. Those who suddenly find themselves unemployed for any reason also have the option of a quick-entry to work without a long period of job applications.

Cons

Lack of stability

As easy as gig workers can enter work there are also low barriers to exit. Any given source of contract work can dry up quickly and gig workers find themselves without the protection that full-time contract workers will have if they are to be made redundant. A sudden lack of  demand, over-staffing or budget costs can find workers without employment and their income in a potentially fragile state.

Benefits and protection

Full-time contracts ensure workers are protected and have a right to employment benefits, gig workers are without these perks. Protection like severance pay, disability leave, PTO, sick days, and pensions are some of the things not afforded to those working within the gig economy.

About Resource Management: we provide a comprehensive range of services throughout the UK and Europe and specialise in the provision of Recruitment Process Outsourcing (RPO) and Manager Service Provider (MSP) programmes. We have been trading for almost 20 years, providing resourcing solutions to a range of blue chip clients from SME to FTSE 100 constituents.

 

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